Chevron downgraded, Oxy Petroleum upgraded at Morgan Stanley

|About: Chevron Corporation (CVX)|By:, SA News Editor

Chevron (CVX -0.9%) is downgraded to Equal Weight from Overweight with a $135 price target at Morgan Stanley, which believes CVX's risk vs. reward has become more balanced in the near-term due to relatively flat production.

Looking ahead, however, the firm sees "relative outperformance" for the company over the next three years.

Replacing CVX as Stanley's top pick among oil majors is Occidental Petroleum (OXY -1.7%), which the firm upgrades to Overweight from Equal Weight with a $120 price target, up from $110.

OXY's restructuring will unfold in the next 12 months and drive upside to growth estimates and value, the firm says.